Vol. 01 · Issue 04

The Smart Money — Weekly personal finance dispatches

Personal finance for people who want to be great with money — written by the friend who already is.

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ISO

Also known as: Incentive Stock Option

What it is

A type of equity compensation that can qualify for long-term capital gains treatment if you hold the shares for a specific window after exercise and grant.

What it really means

Where startup employees make life-changing money and also occasionally owe more tax than they can afford. Model it before you exercise, not after.

See also

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